Silver Market Morning

Gold Today –New York closed at $1,214.80 up $21.60 over Wednesday’s close. Asia held took it up to $1,218. The LBMA Gold price was set at $1,214.75 up $21.75 over Wednesday’s level. The euro equivalent stood at €1,063.42 up €0.89 while the dollar was 2 cents weaker at $1.1423 up from $1.1225 against the euro. Ahead of New York’s opening, gold was trading higher in London at $1,219.60 and in the euro at €1,067.67.

Silver Today – The silver price closed at $17.11 up 57 cents on Wednesday’s level. Ahead of New York’s opening it was trading at $17.36.

Gold _{(very short-term)} The gold price should consolidate with an upside bias, in New York today.

Silver _{(very short-term)} The silver price should consolidate with an upside bias, in New York today.

Price Drivers

The euro rose to $1.1428 up 2.18 cents on the day with the dollar index was down to 93.14 down from 94.50 yesterday. The disappointing news on the retail front shook the U.S. market yesterday and the follow through in Europe will be seen in their markets today. As we said yesterday, “The trading ranges of gold and silver are narrowing to a tight band in the $1,180 -$1,190’s in what seems to be preparation for a strong move. We can feel the markets tensioning despite the seeming calmness on the surface. We have seen the current tight range in gold prices for, nigh-on, two years now so the patterns we see tell us a strong move is due. This is deeply significant now.”

Silver– This has come to pass and certainly the silver chart shows that a four year silver price pattern has broken to the upside. Yesterday we sent out a market Alert to our subscribers to warned them of this. We have much more to say on this in our newsletter.

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Gold and silver have moved together for many, many, years now, as monetary metals, despite the fundamentals of silver being very different to those of gold. We believe this will continue, so we let you know that we also have much to say in our gold newsletter.

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To show how the U.S. gold investors are slightly out of touch with the gold market, there were no purchases or sales of gold into or from the SPDR gold ETF on Wednesday of gold and no movement in the Gold Trust. The holdings of the SPDR gold ETF are at 728.325 tonnes and at 166.14 tonnes in the Gold Trust. With the changes in the prospects for the U.S. economy going forward, based on yesterday’s numbers on retail sales, we expect investors on a broad front to be re-evaluating their forecasts and adjusting their portfolios accordingly.

The date on which rates will be raised by the Fed will go forward, likely into 2016 if data continues to disappoint. We do not expect the rest of the developed world to beat U.S. data, which raises a big question mark over Europe’s growth too. The U.S. consumer follows the maxim, “Once bitten, twice shy” and is saving when he finds he has extra money. The recovery in the U.S. economy depends on him spending, so when will he begin spending?

Regards,

Julian D.W. Phillips for the Gold & Silver Forecasters